102015Mar

Is now the best time in history to take out a mortgage?

Interest rates within the mortgage arena are falling towards, and in some cases passed, historically low levels. For those people who are looking to remortgage their home or those looking to make the first step onto the property ladder, these low interest rates can result in a significant saving.

An ongoing price war between mortgage lenders is driving rates down ever further as the lenders battle it out over customers, both new and old. The battle between lenders has had the effect of making now a great opportunity to secure a mortgage.

As the Bank of England has retained base rates at 0.5%, the mortgage market has reacted with widespread rate slashes over the past 12 months:

  • The typical two-year fix mortgage has dropped from 2.37% to 2.01%.
  • Five-year fix has dropped from 3.34% to 3.09%.
  • Variable rates have tumbled from 2.74% to 1.64%.

How can you benefit?

If you currently have an existing mortgage, checking whether you have any Early Repayment Charges (ERCs) is essential. If your current mortgage deal does contain ERCs, it may not be worth switching at this point. The mortgage market can be a confusing place and a headline interest rate does not always transfer to a good product.

By contacting Bower Mortgages, you can benefit from our experience, knowledge and impartiality. We will do the hard work for you, sift through the market and find the best plan for your needs and requirements.

With interest rates falling throughout the market, now may be the cheapest time to secure a mortgage or consider a remortgage. However, by taking expert advice from Bower Mortgages, you can guarantee that you select the best mortgage for you, as well as saving on interest.